We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • BLOGS & MORE
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • SCQ Forum
      • Reflections
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • Upload your video
  • BLOGS & MORE
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • SCQ Forum
      • Reflections
    • Mobile Apps
Home » Study identifies attributes of best-in-class procurement organizations
Forward Thinking

Study identifies attributes of best-in-class procurement organizations

November 22, 2011
Supply Chain Quarterly Staff
No Comments

A global procurement study conducted by the consulting firm A.T. Kearney found that top companies manage risk by using risk-impact analysis, financial risk management, and disaster planning to protect against unforeseen threats. Leading procurement organizations, Kearney said, "excel at risk management by anticipating, tracking, and planning mitigation strategies" covering a wide range of threats.

For the study, part of its latest Assessment of Excellence in Procurement report, the consulting firm gathered input from 185 companies across 32 different industries. Eighty percent of the respondent companies said they were vulnerable to a major supply disruption.

As part of the study analysis, Kearney identified 13 of the responding companies that consistently demonstrated a high level of procurement performance. These best-in-class companies had seven practices in common. Besides excelling at risk management, leading companies aligned procurement strategy with the overall goals of the company. They also worked closely with their suppliers to improve new-product development performance, reduced time-to-market for new products, and created new business opportunities to boost revenues. Other leading practices included supplier relationship management processes, tailoring category strategies to particular situations, and "more forward-looking" approaches to recruiting and retaining supply chain talent. They also tended to be more advanced in their adoption of technology.

One other interesting finding was that more than 50 percent of respondents plan to increase their sourcing of products and services from China, India, and other Asian countries over the next three years. Although the study did not specifically ask respondents for an explanation, study author Alejandro Ferrer said his belief was that companies were still expecting a "significant cost differential" if they used other sourcing locations than those Asian regions.

  • Related Articles

    Best-in-class retailers have greater supply chain visibility than peers

    Five things procurement organizations need to improve in 2019

    Study: More than half of warehousing organizations to upgrade mobile devices

Recent Articles by Supply Chain Quarterly Staff

Blasgen to retire as leader of CSCMP in March

Reports: Outlook calls for stronger supply chains

Gartner: 4 ways to compete with industry disruptors

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • The 3PL industry: time to reset

  • Supply chain resiliency starts with supplier mapping

  • Freight market growth expected to slow in 2021

  • Seizing the helm

  • The Top Supply Chain Pains That You Should Address For a Healthier 2021

Featured Video

Be8de8b1 9bd3 48d6 9400 0bf476fd1f5d

Optimization Through Lean Management 

Viewer Contributed
Uncertain times can put a tremendous strain on your business’s people, processes and supply chains. However, operations can mitigate some of these factors by adopting lean management principles and instilling a culture of continuous improvement. Raymond Lean Management Manager of Solutions and Support Centers Keith...

FEATURED WHITE PAPERS

  • The Top Supply Chain Pains That You Should Address For a Healthier 2021

  • Research Report: New Rules for Supply Chain Insights, Collaboration and Overall Resiliency

  • Logistics 2030 – Navigating a Disruptive Decade (Year 2 Report)

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing